Gold rises as the dollar falls after US inflation data

Gold resumed its rally on Wednesday after a brief decline due to the release of US inflation data, with the dollar falling after data showing a slight slowdown in US consumer price growth.

Spot gold rose 0.8% to $1,852.65 an ounce, and US gold futures rose 0.7% to settle at $1,853.70.

The dollar index fell 0.1%, after initially rising after the release of inflation data, while gold gave more support.

Fed officials on Tuesday reinforced their arguments for the fastest series of interest rate hikes since at least the 1990s to combat inflation.

Although gold is considered a safe haven from inflation, higher US interest rates increase the opportunity cost of holding bullion, while boosting the dollar, the currency in which gold is priced.

US consumer price growth slowed sharply in April as gasoline prices retreated from record highs, indicating that inflation has likely peaked, but is likely to remain elevated for a while to keep the Fed poised to raise interest rates in order to cool off. the demand.

As for other precious metals, silver increased in spot transactions by 1.6 percent to $21.58 an ounce, platinum rose 3.7 percent to $999.33 an ounce, while palladium declined 1% to $2044.17.